Tag: Dell

Cloud rains profits

Public cloud service and infrastructure markets, operators and vendors’ revenue jumped 21 per cent to $544 billion in 2022.

New data from Synergy Research Group claims that the biggest growth was seen in infrastructure as a service (IaaS) and platform as a service (PaaS).

Annual revenue from these services grew 29 per cent to reach more than $195 billion, despite some headwinds from the strengthening US dollar and problems in the Chinese market.

In the other main segments, managed private cloud services, enterprise SaaS and CDN added another $229 billion in service revenues, having grown by an average 19 per cent from 2021.

Synergy said public cloud providers spent $120 billion on building, leasing and equipping their datacentre infrastructure, which was up 13 per cent from the previous year.

Dell to phase out Chinese chips

Dell will stop using semiconductor chips made in China by 2024, because it fears that relations between the middle kingdom and the land of the fee might worsen.

According to Nikkei, the company told suppliers that it wants to “meaningfully lower” the quantity of other Chinese-made parts in its devices.

Dell has said: “To best meet our customers’ and partners’ needs and expectations, we have geographic diversity, flexibility and stability built into our global supply chain. China is an important market where we have team members and customers to serve. We continuously explore global supply chain diversification that makes sense for our customers and our business.”

Dell’s overall revenue fell

While Dell Technologies’ infrastructure business was celebrating its revenue numbers, its efforts were not enough to see the grey box shifter’s overall revenue for its third fiscal quarter to fall.

For its third fiscal quarter 2023, which ended October 28, Dell reported total revenue of $24.72 billion, which was down six percent compared to the $26.43 billion reported for its third fiscal quarter 2022.

The biggest impact to Dell’s fiscal third quarter 2023 came from a significant 17 percent drop in revenue for the company’s Client Solutions Group — which includes hardware desktop PCs, notebooks, 2-in-1s and thin clients, software, including end-point security, and peripherals, such as monitors, printers and projector — to $13.78 billion.

This included a 13 percent drop in commercial revenue to $10.75 billion, and a 29 percent drop in consumer revenue to $3.03 billion.

IDC predicts doom for PC monitor shipments

Beancounters at IDC are predicting that PC monitor shipments will decline in 2022.

IDC is predicting “cautious channel uptake” over the next few quarters following a 2.7 percent rise in shipments in Q2 compared to the same time last year.

Rising inflation and weakening consumer demand point to a “challenging outlook for at least the remainder of the year”.

Monitor shipments are now expected to decline 3.1 percent year over year in 2022 and 2023 will shrink another 4.2 percent before a weak recovery in 2024.

Red Hat and Dell team up on containers

Dell and Red Hat have entered a new partnership which they think will simplify deploying and managing on-premises containerised infrastructure in multi-cloud environments.

Dell says the deal will help companies speed the development and operations of cloud-native applications while removing IT management barriers.

Dell president of infrastructure solutions Jeff Boudreau said: “The Dell and Red Hat collaboration is key to our efforts to build a multi-cloud ecosystem that offers customers greater flexibility and choice as they develop new applications and modernise existing ones in multi-cloud environments,”

Dell finally pulls out of Russia

Michael DellIt might have taken a while, but Dell has pulled completely out of Russia.

The global technology giant completed its promised withdrawal of resources from Russia last weekend, finishing a break that started in February with the country’s invasion of Ukraine.

A Dell spokesperson said that Dell had shut down its Russian offices in mid-August after deciding to not to service or support products in Russia, Belarus and the Donetsk and Luhansk regions of Ukraine, and the already embargoed Crimea.

Inflation hits the channel

Inflation is already having an impact on those in the PC hardware world.

Canalys research analyst Kieren Jessop warned that PC shipments across Western Europe in the second quarter showed the consequences of inflationary pressures and the ongoing Chinese shipment issues.

This is now a second quarter of decline in Western Europe, with an 18 percent year-on-year drop in shipments in second quarter with notebooks particularly hit, with a 26 percent year-on-year decrease.

PC shipments fall by 15 percent

Beancounters at Canalys have added up some numbers and found that global PC shipments fell by 15 percent in the second quarter mostly because of Chinese production issues.

The decrease took the market back to its lowest level since the pandemic began to take hold in the first quarter of 2020.

Laptops suffered an 18.6 percent drop, with consumers showing more caution with inflation and the cost of living causing some falls in demand. Desktops fared better, with a 0.6 per ent increase, driven by commercial spending on hardware.

Dell records record profits

Dell saw growth in its Infrastructure and Client Solutions Groups as it announced a first quarter record in its latest trading update.

The computer behemoth has revealed its financial results for the first three months of its fiscal 2023 year, with revenue up 16 percent from the previous year to $26.1 billion.

The company also generated a record first quarter operating income of $1.6bn, a 57 per cent increase on the year before, and a non-GAAP operating income of $2.1 billion, up 21 percent.

“We followed a record FY22 with a record first quarter FY23”, said Jeff Clarke, vice chairman and co-chief operating officer of Dell Technologies.

Dell focuses on telco and edge computing

Dell Technologies is setting its sights on telco and edge computing and is chucking money in that direction.

Speaking to the gathered throngs at the Global Channel Summit at Dell Technologies World in Las Vegas Dell SVP global alliances, Denise Millard said that if you looked at the cash the company is distributing it is in telco, and edge areas. Dell also wants to “capitalise on the shift to 5G”.

Dell wanted to highlight a  $1.3 trillion market opportunity around edge computing. Millard referenced a recent IDC study that estimated that by 2024, more than 90 percent of operational processes will be deployed at the edge. Today the figure is 20 percent.

Dell brings recycling system to the UK

Dell is bringing its ‘modernised’ IT disposal services to the UK.

The vendor launched its Asset Recovery Services to the UK, which it claims will provide a “modern, simplified and standardised offer to help customers scale their recycling efforts”.  There is an online portal to help retire and recycle any laptop, desktop, server or accessory regardless of brand.

Dell says the self-service portal simplifies asset disposition “even more” and provides businesses with real-time value estimates, comprehensive resources and streamlined takeback of devices. Asset Recovery Services is available through Dell Technologies and its channel partners.

Monitor market continues to fall

The global PC monitor market continued to decline in the fourth quarter of 2021 with unit shipments shrinking 5.2 per ent compared to the same quarter in 2020.

According to IDC beancounters, the market still exceeded expectations and ended 2021 with a five percent year on year growth rate. With 143.6 million units shipped globally, 2021 also stood as the best performing year since 2012, when the volume was 150.3 million.

The research firm’s data also showed that a weaker H2 2021 brought down the strong momentum of the first half, which had an impressive year on year growth rate of 19.4 percent.

IDC added that challenges seen in Q3 persisted in the holiday quarter. Although mature regions slowed, volume was supported by emerging markets catching up on backlogs while global commercial volume helped to offset a softer consumer base.

Dell wants to boost partner relationships

Dell Technologies has a new vice president of channel strategy and VMware channel sales.

The Grey Tin box shifter has promoted Lukas Bedi, who says he has a cunning plan to  “strengthen” partner relationships and ensure the channel has the “tools” it needs.

He will be responsible for setting Dell’s overall channel strategy, designing Dell Technologies Partner Programme incentives, competencies and requirements, as well as accelerating Dell’s solid VMware channel business. Bedi’s focus in his new role will be on the operational and strategic momentum of Dell partners.

Synaxon announces partnership with UFP

Channel services outfit Synaxon is teaming up with specialist print products distributor UFP.

The agreement means resellers now have access to UFP’s expansive specialist print and IT portfolio through Synaxon’s online procurement platform EGIS.

In a statement Synaxon said that UFP brings the total number of distributors on the platform to 40 and broadens the range of offerings available to resellers, retailers, and office product suppliers.

UK MD Mike Barron said that UFP was a valuable addition to EGIS. “It’s a thriving and dynamic business built on delivering the best products and services and we’re delighted to have them onboard.”

Dell releases new partner programme

Dell has unveiled its 2022 partner programme which features a new incentive structure, additional storage rebates and a “simplified” tech refresh process.

The new structure is based on a single structure with regional rebate variations with one set of requirements that combine revenue and training for partners.

Dell claims the restructure enables partners to focus on positioning the best solution for their customers while earning consistent, lucrative incentives, regardless of route to market.

Dell’s global channel chief Rola Dagher wrote in his bog that Dell was anticipating a data-centric culture, a multi-cloud world, a more distributed environment and a resounding corporate impact on the communities.